Opera, a European worth
Félix Losada
October, 2013
1
© 2013 Deloitte S.L.
Contents
2
Our ambition
3
Scope and methodology of the study
4
The Economic Impact of Opera
5
Opera as spending engine
10
The importance of the audience spending
16
Recommendations
28
© 2013 Deloitte S.L.
Our ambition
To analyse the economic scope of opera by considering all agents involved in order to increase the
knowledge about its value, and to provide theatres and festivals with new strategies and tools that
will enhance their wider benefits, so we can move to actions based on scientific findings rather than
anecdotes.
To know the audience profile and
their spending profile linked to the
tickets.
To determine and measure the
scale of economic value
contribution and positive impact
of opera theatres and festivals
into society
To make society aware of the benefits
of opera institutions, by making it feel a
crucial and integrated element of these
institutions and filling citizens with
pride.
3
To approach new
strategies of
collaboration which
promote and encourage
higher joint expenditure
of the audience to
create complementary
revenue streams.
© 2013 Deloitte S.L.
Scope and methodology of the study
In Europe
The representative
sample of 12
participating theatres
of diverse cultures,
sizes and from
different cities of the
old continent,
ensures the validity
of the study.
A total of
3,873 European
spectators surveyed
During the events hosted in 2012-2013 season by
theatres in order to obtain their spending profile and
considering the audience and with 95% confidence
level.
4
Austria, Volksoper Wien
Belgium, La Monnaie
Finland, Finnish National Opera
France, Opéra de Rouen Haute Normandie
Germany, Badisches Staatstheater Karlsruhe
Ireland, Wexford Opera Festival
Italy, Teatro Comunale of Bologna
Netherlands, Amsterdam Music Theatre
Russia, Perm Opera and Ballet Theatre
Spain, Festival Castell de Peralada
Spain, Teatro Real
Sweden, Royal Swedish Opera
The study also includes
the spending made by the
foreign artists in
accommodation,
transportation and food
and beverages due to their
participation in the
programme of the season.
© 2013 Deloitte S.L.
The economic
impact of Opera
© 2012 Deloitte S.L.
The average economic impact of opera theatres
and festivals is:
An average of
918 jobs is
maintained
Theatres
An average of
5.7 mill. € of tax
return is generated
Festivals
72%
30%
comes from the
own activity of the
theatres
comes from the own
activity of the festivals
27%
of the impact is due
to the theatres’
audience
6
An average of
40.4 mill. € of
GDP contribution
is generated
67%
of the impact is due to
the festivals’ audience
1%
3%
of the impact is
generated by the
spending of the
foreign artists
of the impact is
generated by the
spending of the foreign
artists
© 2013 Deloitte S.L.
Contribution to European GDP
An average contribution to GDP of
40.4 mill. € is generated by opera
theatres.
Average mill. €
of GPD generated
105.2
Theatres that spend the most are not the ones
that generate the greatest GDP contribution,
but are those whose spectator spends the
most in joint expenses.
//
100
43.4
45
47%
18%
2.6 € are generated in GDP
for each euro spent by
festivals in opera activities.
//
1%
20
14.9
14%
81%
10
1%
9.9
53%
68%
By the audience
85%
3%
29%
Practice that generates the
highest GDP contribution
7
Theatres that generate a highmedium GDP contribution
By foreign singers & staff
By Opera theatres or festivals
Theatres that generate a medium- GDP contribution generated by
low GDP contribution
festivals
© 2013 Deloitte S.L.
Generation of tax return
An average of 5.7 mill. € of tax
return is generated by opera theatres.
Average tax return
generated
1,2
mill. € made by the spectator in the
The spending
hospitality industry generates an average tax
return of 620,000 € per opera season to each
theatre
13.6
//
14
6.5
Festivals generate an average
of 1.2 mill. € of tax return.
7
46%
18%
//
1%
It means almost ¼ of the amount
generated by the theatres per season
2.1
2
14%
1.2
1%
81%
1
54%
67%
85%
3%
30%
Practice that generates the
highest tax return
8
Theatres that generate a highmedium tax return
Theatres that generate a mediumlow tax return
Tax return generated by
festivals
By the audience
By foreign singers & staff
By Opera theatres or festivals
© 2013 Deloitte S.L.
Contribution to the maintenance
of the employment in Europe
An average of 918 jobs is maintained by
opera theatres.
Average jobs
maintained
2,199
2,000
//
Festivals maintain 263 jobs
of average in Europe.
990
1,000
21%
//
49%
1%
395
500
17%
1%
250
And 6.9 jobs are maintained for each full time
employee. With a very concrete activity gathered in
only 2 months, festivals get to generate 1/3 of the
employment that a theatre creates with an annual
season.
263
65%
78%
51%
82%
100
3%
By the audience
32%
Practice that creates the
highest number of jobs
9
Theatres that create a highmedium number of jobs
Theatres that create a mediumlow number of jobs
Number of jobs created by
festivals
By foreign singers & staff
By Opera theatres or festivals
© 2013 Deloitte S.L.
Opera as spending
engine
© 2012 Deloitte S.L.
About the theatres
The average expenditure of
opera theatres is 25.9 mill. €
Expenditure in opera theatres (in million of €)
The average expenditure of
opera festivals is 3.5 mill. €
Expenditure in opera festivals (in million of €)
0.8 mill. €
0.1 mill. €
2 mill. €
0.3 mill. €
2 mill. €
8%
3%
3%
9%
0.3 mill. €
8%
2.4 mill. €
9%
9%
10%
2.7 mill. €
0.5 mill. €
62%
51%
14%
16.1 mill. €
14%
1.8 mill. €
0.5 mill. €
Salaries
Theatre/ premises costs
Production costs - labour
Production costs - materials
Other (including Marketing, publications, etc.)
Technical costs
11
Salaries
Production costs - materials
Theatre/ premises costs
Other (including Marketing, publications, etc.)
Production costs - labour
Technical costs
© 2013 Deloitte S.L.
About the theatres
Theatres whose activity is higher than
75% of their total opera productions
generate a higher associated spending of
the spectator, and therefore, a higher
economic impact.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Best Practice
Total salaries
12
Production costs - labour
Higher-Medium
Production costs - materials
Medium-Lower
Technical costs
Theatre/premises costs
Other
© 2013 Deloitte S.L.
GDP contribution of the theatres by industry
The theatres that generate the highest contribution to
GDP are those which have an impact in accommodation
and food services sector of more than 24%.
//
30.000.000
10.000.000
The theatres with an organizational model
aimed to the international audience contribute
with more than 30 mill. € to the hospitality
industry.
8.000.000
6.000.000
4.000.000
2.000.000
0
13
© 2013 Deloitte S.L.
Tax return
//
6.000.000
1.400.000
1.200.000
Opera theatres activity
generates nearly half a
million € in taxes in the
transport industry as well as
in health and social work.
1.000.000
800.000
600.000
400.000
Best Practice
Average Highest impact
Average Lowest impact
Average Total
200.000
0
14
© 2013 Deloitte S.L.
Creation of employment by industry
350
//
1.000
300
Each opera theatre holds over
900 jobs annually, 200 belong
to accommodation and 191 to
retail trade.
250
200
Opera theatres activity generates nearly
100 jobs in Public Administration and
business services
150
100
50
Best Practice
Average Highest impact
Average Lowest impact
Average Total
0
15
© 2013 Deloitte S.L.
The importance
of the audience
spending
© 2012 Deloitte S.L.
Audience profile
Audience profile
The Opera European spectator profile is a 54 year
old woman with higher education residing in the
same city of the theatre, and who attends the
theatre by car and is usually accompanied by her
partner (36%). The average audience expenditure
per person is 159 €.
BOX OFFICE
Woman (60%) of 54
years old of average
and with higher
education
(77%)
17
Resides in the
same city of the
theatre (61%)
Travels by car
(37%)
The average ticket
cost is 63 €.
96 € of average
spent in associated
expenses
© 2013 Deloitte S.L.
Audience spending profile by Accommodation and
Transportation
37%
13%
of spectators use their
own car to get to the
theatre
of spectators require
accommodation
Tickets
Grooming &
appearance
68%
of international
spectators stay
in 3-5 star hotels
Accommodation
Opera
Merchandising
& gifts
Transportation
Food & Beverages
inside the theatre
38 €
of average spent by
person in
accommodation,
considering both requiring
or not accommodation
18
41%
of spectators use more than
one mean of public
transportation
Food & Beverages
outside the theatre
11 €
of average spent by
person in
transportation
© 2013 Deloitte S.L.
Audience spending profile by food & drinks
Inside the theatre
Outside the theatre
63%
48%
of spectators
spend in food and
drinks outside the
theatre
Tickets
Grooming &
appearance
23%
Accommodation
Opera
12%
Merchandising
& gifts
of spectators spend
more than 20 € in
food and drinks
Transportation
Food & Beverages
inside the theatre
19
of spectators
consume snacks
and drinks inside
the theatre
of spectators spend more
than 20 € in snacks and
drinks
Food & Beverages
outside the theatre
17 €
11 €
of average spent in
food and drinks by
person
of average spent in
snacks and drinks by
person
© 2013 Deloitte S.L.
Audience spending profile by merchandising and
grooming & appearance
16%
21%
of spectators buys
merchandising and gifts
Tickets
Grooming &
appearance
8%
Accommodation
Opera
4%
Merchandising
& gifts
spends
of spectators
more than 20 € in
merchandising and
gifts
Transportation
Food & Beverages
inside the theatre
4€
of average spent in
merchandising and
gifts by person
20
of spectators spend
money in grooming
and appearance
of spectators spend
more than 100 € in
grooming and
appearance
Food & Beverages
outside the theatre
15 €
of average spent
by person in
grooming and
appearance
© 2013 Deloitte S.L.
Audience profile
Regarding the expenditure in food
and beverages, the differences are
more significant: men spend 5€ more
than women
Gender
Male spectators have an average
spending of 17 € as they use car,
while female decrease the spending
to 5 € as they attend by subway
Although the majority of spectators
are women, men spend an average of
26 € more than women when
attending to the opera. While women
spend 147€ in total, men spend 173€.
Men spend an average of 39 € in
accommodation, opposite to 36 € of
women
Although it may seem that women
give more importance to grooming
and appearance, men spend 1.1 €
more
Men spend 1.7 € more than women in
merchandising & gifts
The average of women (60%)
attending opera is higher than the
average of men (40%)
21
The average spent by
men (70€) in tickets is
higher than by women
(57€)
Male spectators use car as
the main mean of
transportation, while females
attend to the theatre by
public transportation (40%)
JOINT EXPENSES
Male: a total of 103 €
Female: a total of 90 €
BOX OFFICE
© 2013 Deloitte S.L.
Audience profile
Spectators between 51 and 65 years
old spend over 18 € in grooming and
appearance, almost 3 € above
average
Age
Spectators around 50 buy the most
expensive season tickets (106 €) and
spend more in snacks and drinks
inside the theatre (12 €).
Spectators older than 80 years old are
who most buy merchandising and gifts,
with an average cost of 4.5 €
The greatest spending in snacks and
drinks is made by viewers between 36
and 50 years old outside the theatre
(22€)
The average expenditure of the
audience between 36 and 65 years
old is 2 € more because they move by
taxi
The average spending in
accommodation of those spectators
older than 80 years old is the highest
one: 51 €
The main audience of
opera theatres is
between 51 and 65
years old (31%)
Spectators between 51
and 65 years old are
mainly local audience
(29%)
The greatest spending in
season tickets is made
by spectators between 51
and 65 years old (106 €)
Spectators younger
than 35 years old move
mainly by subway
(30%), while the oldest
move by car (40%)
22
Audience under 26
years old spend only
33 € in tickets and 42 €
in joint expenses
BOX OFFICE
© 2013 Deloitte S.L.
Audience profile
600 €
550 €
500
400 €
€
450 €
350 €
400 €
200
300 €
€
350 €
//
Attending to the performance
with a season ticket implies a
higher cost (41€ more) than
buying an individual ticket
Total
expenses
//
Type of ticket
250 €
300
150 €
250
200 €
€
200
€
100
150 €
150 €
100 €
100
50 €
€
50
€
50 €
Ticket Price
0€
0€
20 €
Best Practice
Who buys the season ticket?
30% of spectators attend to opera
with season tickets, which is the
most expensive. However, they
spend less in joint expenses,
mainly in accommodation as they
are local audience (67%).
23
40 €
60 €
High - Medium
Spectators buying a single
ticket are who spend the most
in joint expenses: an average
of almost 100€
80 €
Medium - Low
100 €
120 €
Festivals
140 €
Average
Single ticket buyers spend an
average of 11 € more than the
average, specially in snacks &
drinks outside the theatre and in
grooming and appearance
BOX OFFICE
© 2013 Deloitte S.L.
Audience profile
The average spending in accommodation is
highly different by origin of the spectator: 7.5
times more than the rest of the audience,
being 302 € for international spectators
facing 40 € of the rest of the audience
International audience
Non-local spectators spend slightly
more in transportation, 19 €
The international spectator is the one
who buys the most expensive tickets
and therefore generates a higher joint
expenditure in accommodation, being
theatres and festivals with an
international audience profile above
25% the ones that generate the
greatest economic impact.
International spectators spend the
most in drinks and beverages (44 €),
being their spending double than
local ones.
While local spectators do not even
spend 10 € in grooming & appearance,
regional, national and international
spectators spend 23 € of average
International spectators spend the most in
merchandising and gifts: 11 €, 5.6 € more
than the rest of spectators
6 % of the audience of opera theatres and
festivals is international, with an average
stay of 5 days.
Foreign spectator spends an average
of 478 € during its stay
404 € of average in joint
expenses during its stay
International spectator
buys the most expensive
tickets (74 €)
International audience overcomes
by 10 times more the average
spending of the local audience
BOX OFFICE
24
© 2013 Deloitte S.L.
Audience spending profile by concept
In order to succeed, opera
theatres should focus in their
added value: the high purchasing
power of their audience and
guided within the theatre.
4€
Merchandising & gifts
International spectator generates
more economic impact in GDP terms
for its joint expenses, although
national audience buys the most
expensive tickets
15 €
Grooming &
appearance
11 €
Snacks & drinks
63 €
Tickets
17 €
Snacks & drinks
11 €
Transportation
63 €
Tickets
25
38 €
Accommodation
78 €
81 €
average expenses
inside the theatre
average expenses
outside the theatre
96 €
Joint
expenses
159 €
in total
© 2013 Deloitte S.L.
Programme season for weekends
Weekend programming allows to
offer more expensive tickets on
Fridays and Saturdays and gets the
greatest economic impact.
On Mondays the
average age is 72
years old.
Tuesday is the only day
in which season tickets
purchase (45%) exceeds
single tickets (43%).
Sunday
Thursday is the day of
the week which gathers
the highest percentage
of audience under 35
years old.
Monday
Tuesday
Wednesday
Thursday
Friday’s joint
spending is doubled
and it is almost
three times the
ticket price
Friday
Saturday
150,41 €
113,96 €
86,22 €
79,82 €
91,72 €
48,61 €
63 €
Tickets
47,22 €
26
© 2013 Deloitte S.L.
Schedule of the performances
The performance schedule that generates higher income from
tickets and joint expenses is the time range starting at 20:00 hours
and lasting around or less than 3 hours.
3 pm
6 pm
7 pm
8 pm
131 €
67 €
54 €
57 €
93 €
49 €
36 €
27
45 €
© 2013 Deloitte S.L.
Recommendations
To communicate and share the economic impact of opera:
“the need for public support to realize public value”.
#1
To take care of male
spectator of 51 years old,
who spends the most in
joint expenses
#2
To design an international programme
from the agreements of several opera
theatres and festivals around the same
city, region or country
#3
To establish partnerships
with local restaurants,
bars, hotels,… to foster the
expenditure of the
audience
28
#4
To create alliances with
leading opera theatres and
festivals
© 2013 Deloitte S.L.
Appendix 1
Accommodation and food service activities
Retail trade except of motor vehicles and
motorcycles; repair of personal and household
goods
Rest
Post and telecommunications
Recreational cultural and sporting activities
Electricity gas steam and hot water domply
Real estate activities
Financial intermediation except insurance and
pension funding
Land transport: transport via pipelines
Publishing printing and reproduction of recorded media
Health and social work
Education
Construction
Computer and related activities
Other business activities
Warehousing and auxiliary transport activities; activities
of travel agencies
Public administration and defense; compulsory
social security
Manufacture of wearing apparel; dressing and dyeing of fur
Insurance and pension funding except
compulsory social security
29
© 2013 Deloitte S.L.
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